India, March 23 -- Vertical integration in the AI stack does not present a different picture -- it has its benefits and can cause anti-competitive harm.

Rahul Rai, Partner and CoFounder at Axiom5 Law Chambers, tells us more. Excerpts from an interview

DQ: Why are semiconductors increasingly being viewed as the critical layer in the AI supply chain from a competition law perspective?

Rahul Rai: We are witnessing the beginning of a shift in antitrust regulators' focus from AI applications to the infrastructure layer, specifically semiconductors. Chips are arguably not just components, but the "gateway" to the entire AI economy.

A couple of factors have drawn regulators' attention towards the infrastructure layer, including:

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